taxes

What is the ITP transfer tax when buying resale property in Spain?

The Impuesto de Transmisiones Patrimoniales (ITP) is the transfer tax paid when buying a resale (second-hand) property in Spain.

The rate varies by autonomous community — in the Valencian Community (which includes Costa Blanca), the standard rate is 10% of the purchase price.

Some regions offer reduced rates for young buyers, large families, or disabled buyers.

ITP is paid within 30 days of signing the escritura, and your lawyer or gestor handles the payment via a self-assessment form (Modelo 600).

The tax is calculated on the declared purchase price, though the tax office may apply a minimum reference value based on the catastral value.

If they consider the declared price too low, they can issue a complementary assessment for the difference.

ITP only applies to resale properties — new builds are subject to IVA (VAT) instead.

WOW-Estates provides a detailed cost breakdown including ITP for every property our clients consider.